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Henry Schein (HSIC) Stock Moves Up 16.9%: What's Driving It?
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Shares of Henry Schein, Inc. (HSIC - Free Report) have rallied 16.9% compared with the industry's rise of 2.7% since its fourth-quarter 2021 earnings release on Feb 15.
The leading distributor of healthcare products and services across the globe has a market capitalization of $12.14 billion. Its earnings for fourth-quarter 2021 surpassed the Zacks Consensus Estimate by 18.9%.
This Zacks Rank #2 (Buy) stock has a favorable VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
The rally was largely driven by Henry Schein’s robust performances across all three of its operating businesses in the fourth quarter. Further, the market is also upbeat about Henry Schein One's expansion of its data analytics solutions to private practices.
Let’s take a quick look at the important catalysts to understand this positive trend.
Key Growth Catalysts
Impressive Q4 Performance: The market is upbeat about Henry Schein's better-than-expected fourth-quarter 2021 results. The company saw robust performances by all three of its operating businesses in the quarter. The company’s international performance was also impressive. In the International Dental business, the company registered strong sales growth in the U.K., driven by continued recovery. Growth within Henry Schein One continues to be primarily driven by recovery in patient traffic in dental offices. Further, expansion of the gross margins bodes well.
Expansion of Data Analytics to Private Practices: Henry Schein recently announced that its subsidiary, Henry Schein One, has introduced a version of its dental analytics platform for dental service organization — Jarvis Analytics — to help private dental practices accelerate business growth. The latest development will support Henry Schein’s objective to provide best-quality solutions to dental practices. Per Henry Schein’s management, as more data is generated everywhere, businesses need analytics in every part of their operation to drive growth. With Jarvis Analytics, dental practices can turn data into dollars using analytics to help identify other revenue streams.
Image Source: Zacks Investment Research
Bullish EPS Guidance: Henry Schein has updated its 2022 EPS financial guidance, instilling investor confidence in the stock. For 2022, Henry Schein expects adjusted earnings per share from continuing operations in the range of $4.75 to $4.91, suggesting 7-10% growth compared with 2021. The Zacks Consensus Estimate for the same is currently pegged at $4.66.
Favorable Parameters
Estimates for 2022 and 2023 have moved up nearly 4.5% and 3.4%, respectively, in the past 90 days, reflecting investors’ optimism.
Henry Schein surpassed estimates in all of the trailing four quarters, the average surprise being 25.54%. For 2022, Henry Schein has an expected earnings growth rate of 7.52%, while revenues are expected to grow 6.43% on a year-over-year basis.
Henry Schein has a current cash flow growth rate of 61.3% compared with the industry’s 2.73%. The stock’s return on equity (ROE) stands at 15.84% versus the industry’s 13.64%.
Other Key Picks
Some other stocks in the broader medical space that investors can consider are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 49.7% compared with the industry’s 4.7% growth in the past year.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 23.8% versus the 62% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably against the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.
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Henry Schein (HSIC) Stock Moves Up 16.9%: What's Driving It?
Shares of Henry Schein, Inc. (HSIC - Free Report) have rallied 16.9% compared with the industry's rise of 2.7% since its fourth-quarter 2021 earnings release on Feb 15.
The leading distributor of healthcare products and services across the globe has a market capitalization of $12.14 billion. Its earnings for fourth-quarter 2021 surpassed the Zacks Consensus Estimate by 18.9%.
This Zacks Rank #2 (Buy) stock has a favorable VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
The rally was largely driven by Henry Schein’s robust performances across all three of its operating businesses in the fourth quarter. Further, the market is also upbeat about Henry Schein One's expansion of its data analytics solutions to private practices.
Let’s take a quick look at the important catalysts to understand this positive trend.
Key Growth Catalysts
Impressive Q4 Performance: The market is upbeat about Henry Schein's better-than-expected fourth-quarter 2021 results. The company saw robust performances by all three of its operating businesses in the quarter. The company’s international performance was also impressive. In the International Dental business, the company registered strong sales growth in the U.K., driven by continued recovery. Growth within Henry Schein One continues to be primarily driven by recovery in patient traffic in dental offices. Further, expansion of the gross margins bodes well.
Expansion of Data Analytics to Private Practices: Henry Schein recently announced that its subsidiary, Henry Schein One, has introduced a version of its dental analytics platform for dental service organization — Jarvis Analytics — to help private dental practices accelerate business growth. The latest development will support Henry Schein’s objective to provide best-quality solutions to dental practices. Per Henry Schein’s management, as more data is generated everywhere, businesses need analytics in every part of their operation to drive growth. With Jarvis Analytics, dental practices can turn data into dollars using analytics to help identify other revenue streams.
Bullish EPS Guidance: Henry Schein has updated its 2022 EPS financial guidance, instilling investor confidence in the stock.
For 2022, Henry Schein expects adjusted earnings per share from continuing operations in the range of $4.75 to $4.91, suggesting 7-10% growth compared with 2021. The Zacks Consensus Estimate for the same is currently pegged at $4.66.
Favorable Parameters
Estimates for 2022 and 2023 have moved up nearly 4.5% and 3.4%, respectively, in the past 90 days, reflecting investors’ optimism.
Henry Schein surpassed estimates in all of the trailing four quarters, the average surprise being 25.54%. For 2022, Henry Schein has an expected earnings growth rate of 7.52%, while revenues are expected to grow 6.43% on a year-over-year basis.
Henry Schein has a current cash flow growth rate of 61.3% compared with the industry’s 2.73%. The stock’s return on equity (ROE) stands at 15.84% versus the industry’s 13.64%.
Other Key Picks
Some other stocks in the broader medical space that investors can consider are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson, carrying a Zacks Rank #2, reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 49.7% compared with the industry’s 4.7% growth in the past year.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 23.8% versus the 62% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably against the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.